The Independent: With the current volatile state of the stock market, some investors are turning to other forms of investment. For example, most West End theatre productions are funded by angel investors, often investing relatively small amounts such as £500 to £10,000. A successful production can pay the investor back many times. Judy Craymer, producer of Mamma Mia!, is now the 38th richest music millionaire in the UK, according to the Sunday Times Rich List. She is worth £62m since remortgaging her home to finance her idea of a musical based around Abba's hits.
Sunday, September 11, 2011
The play's the thing for investing
The Independent: With the current volatile state of the stock market, some investors are turning to other forms of investment. For example, most West End theatre productions are funded by angel investors, often investing relatively small amounts such as £500 to £10,000. A successful production can pay the investor back many times. Judy Craymer, producer of Mamma Mia!, is now the 38th richest music millionaire in the UK, according to the Sunday Times Rich List. She is worth £62m since remortgaging her home to finance her idea of a musical based around Abba's hits.
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I guess it's a lot cheaper to produce plays in London than it is in New York these days. The number of producers shows have these days tends to be quite astounding; the Tony's have had space and seating issues for the productions nominated for best musical because of so many producers in years past. Each production will usually have a certain dollar (or pound) amount that gets producers 'top billing' on the marquee and Playbill above the name of the show, but there are many producers who have invested less.
The Producer's Perspective has had informative discussions about the reasons for investing and diversification lately.
I wonder if it is more risky to invest in the stock market or in a musical? It is also hard to know what people will think about art and musicals. Who could have predicted that Phantom would be running for more then 10 years let alone 20 years. Although I do think that it would be easier to track one show and to see if it's doing well as apposed to the whole stock market, although that is all about gauging how people will react to other people which in turn is just what people who are analyzing art are doing. So I wonder which is better to invest in musicals, or the stock market.
We can invest in so many things these days and for the most part they all give us no return. There are so many loopholes and problems with investing now that you might as well try it. Looking at it from a financial perspective the current interest rates, returns on Treasury bonds, and returns on investments rarely equal out to inflation and are rarely more sure than the blackjack table. For those of us that work in the theatre we might as well support our fellow artists than line the pockets of big bankers. With the show we are at least investing in something real and tangible not some made up numbers on wall street that are so convoluted that no one can under stand them. Also with an investment in a show there is the possibility that you might be involved with a hit or a flop but at least you know where your money went.
God bless the people who have the money to invest in theatre. After studying the layout of non-profit organizations, I question what some companies would do without the help of investors. Even with an Open Systems Model, theaters still struggle and rely heavily on the support of donations, investors, and subscribers. However, I can’t help but consider the role that these investors play in the theater’s season choices and missions. At what length would an organization go to ditch their creative goals for the opportunity to receive more green?
Haha, Zoe makes a hilarious point. The stock market or theater, both seem like a crap shoot at this point. I suppose that this article is a positive sign of an upward trend for theater, but I'm not so optimistic. This article is juxtaposed to another that discusses how art is dying. Then again, people do love giving money to the theater and supporting the arts. Overall the investment usually not for monetary gain, but about contributing to the arts. But as Zoe points out, are there really any sure investments anymore?
I agree that like in any investment, there is rarely a fool-proof way to predict whether or not the amount you invest would be worth your gain in the long run. However, I feel that investing in theater seems much more exciting than investing elsewhere, and that tracking of your show's success is a lot more evident with reviews/ audience numbers, and ticket prices. I feel that it is also worthwhile to invest in something that in someway supports your field of study, the artists who are trying to make it in the business just as much as you are. Although I myself wouldn't invest too much money in a play that might end up being a flop, I would like to test the waters with even a tiny sum of money in the future, when and even if I have enough money to do so!
I really do not think that investing in theatre is a solid way to ensure returns. It is always said that if you want to make money, you would not be in theatre.
Of course there are those few productions alone the line of Mamma Mia, Wicked, and Phantom where anyone who invested in those are now rolling in the dough, most productions will be lucky to pay back their investments at all.
While I do not advocate the stock market right now, I also cannot advocate investing in theatre if your prime mission is to make money.
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